Can the EU's Clean Industrial Deal Deliver for the Planet? – Center for International Environmental Law

Revealed December 2, 2024

By Delphine Levi Alvares, International Petrochemicals Marketing campaign Supervisor on the Heart for Worldwide Environmental Legislation, and Mike Walker, Environmental Marketing campaign Advisor. 

As international temperatures soar and the petrochemical {industry} accelerates manufacturing, the EU is at a crossroads. Will new EU Fee President Ursula von der Leyen’s Clear Industrial Deal prioritize local weather and group — or bow to the calls for of polluters and profit-driven pursuits? 

Whereas governments implement insufficient decarbonization insurance policies, the fossil gas {industry} is pushing for main enlargement within the manufacturing of plastic and petrochemical merchandise. The urgency for decisive motion has reached a brand new top, particularly after disappointing negotiations didn’t seal an formidable International Plastics Treaty in Busan, South Korea. That is the difficult panorama during which the brand new EU Faculty of Commissioners begins its work.

Within the buildup to this new EU Fee, von der Leyen has championed larger EU competitiveness via simplification and deregulation whereas sustaining current social and environmental requirements (i.e., marrying the Inexperienced Deal with a brand new Clear Industrial Deal). However can these competing targets align? With regards to petrochemicals, the reply have to be clear: this union should take each alternative to limit, frustrate, and put an finish to this dangerous {industry}.

The shift to the best with the European Parliament election in June was adopted by von der Leyen’s intense politicking to safe her second mandate. She succeeded via dealmaking and juggling historic and controversial alliances. Von der Leyen courted and made offers with the far proper whereas stringing alongside outdated allies. Doubtlessly, industrial curiosity was by no means distant.

The complexity of the dealmaking that secured von der Leyen’s second time period with a brand new Fee should not embody promoting out to large polluters such because the petrochemical {industry}. The planetary disaster requires complicated options, together with remedying the harms of plastics, fertilizers, and pesticides. In realizing the promise of the Inexperienced Deal via the supply of a Clear Industrial Deal, the Fee should ship on the total potential of the Chemical substances Technique, particularly far-reaching restrictions on poisonous chemical substances and petrochemicals.

The Petchem Playbook

“We want a Union that’s sooner and less complicated, extra targeted and extra united, extra supportive of individuals and firms,” acknowledged von der Leyen in her Political Pointers. Whereas she was unequivocal in restating her dedication to the Inexperienced Deal, she has been equally clear in making the case for the Clear Industrial Deal to decarbonize European {industry} and shift power dependency.

This dedication was not deliberate in isolation. In February 2024, together with then Belgian Prime Minister Alexander De Croo and main chemical producers, von der Leyen signed on to the Antwerp Declaration “to incorporate actions to get rid of regulatory incoherence, conflicting goals, pointless complexity in laws and over-reporting.” This has been answered, nearly phrase for phrase, within the commitments of the brand new Fee and von der Leyen. 

Antwerp is a significant website for the EU petrochemical {industry}, an entry port for its feedstock. In signing an industry-related declaration, there was a transparent message of intent and muscle. The brand new Fee will probably embolden the petrochemical {industry}, leaving it with little doubt that “simplification” means manufacturing deregulation. This can be challenged, as there isn’t a future during which we notice our local weather commitments, which the petrochemicals {industry} is a part of.

Von der Leyen’s Successful Formulation

A collection of studies have given substance to von der Leyen’s agenda. In April, the Letta Report confused the significance of the EU’s single market and the necessity for larger resilience to exterior pressures and corresponding adaptation. Resilience and adaptation are key motivators for industrial transformation and may very well be interpreted as a necessity to cut back dependency on imported sources.

The Draghi Report went additional in emphasizing the necessity for larger competitiveness (i.e., elevated productiveness). He has been evangelical about the necessity to enhance productiveness, larger innovation, funding, and competitiveness. The report champions deregulation as a requirement for elevated productiveness and innovation, however this might pose a hurdle for the EU by way of the supply and evolution of social, well being, and environmental commitments.

In her speech to the European Parliament on November 27, after the Faculty of Commissioners was confirmed, von der Leyen introduced that the Fee’s first main initiative could be a “Competitiveness Compass” framed across the three pillars of the Draghi Report. The second will deal with decarbonization and competitiveness. We may give route to that pillar and steer it away from petrochemicals and Antwerp.

After which there may be the Niinistö Report on preparedness. Whereas the report focuses on armed battle and safety threats, it additionally stresses the necessity for the EU to enhance its general resilience and preparedness, particularly on the particular person stage. This doesn’t contradict the Letta and Draghi Stories however hints at a extra minimalist perception that much less is extra, “The necessity for higher preparedness forces us to contemplate our mindset and even our values, and the best way to defend them from a brand new perspective” — transferring away from dependency on fossil fuels from authoritarian States or unreliable actors.

A Poisonous Combine

These studies gave substance to von der Leyen’s agenda, however the Commissioner’s affirmation course of defined how she is going to notice it. Via closely choreographed mission letters, written responses, and hearings, von der Leyen has revealed the problem of reconciling her agenda’s seeming contradictions.

The Faculty organogram reveals the numerous traces of collaboration between Commissioners. Their mission letters duplicate obligations and, of their hearings, they struggled to elucidate how they might enhance productiveness whereas sustaining requirements. What appears clear is that von der Leyen has designed a construction that funnels decision-making and arbitration to her desk.

Commissioner for the Economic system and Productiveness; Implementation​ and Simplification portfolio, Valdis Dombrovskis, was emphatic, “simplification doesn’t imply deregulation … It doesn’t imply abolishing our coverage targets or our excessive social and environmental requirements.” His goal is to facilitate {industry} in a much less burdensome manner.

Whereas this may very well be simply interpreted as in step with the Antwerp Declaration and a reason behind celebration by the petrochemical {industry} and its fossil gas allies, throughout her listening to, Teresa Ribera Rodríguez, Govt Vice-President for the EU Fee for Clear, Simply and Aggressive Transition, pledged that “Europe’s long-term competitiveness requires us to shift away from fossil fuels, whereas embracing a clear, round, environment friendly financial system that draws expertise and investments, and generates high-quality jobs and merchandise.”

Ribera didn’t outright contradict Dombrovskis, however Stéphane Séjourné, Govt Vice-President for Prosperity and Industrial Technique, was leaning into the structural ambiguity, “my aim is prosperity, and the frequent thread via my work can be competitiveness … I need to streamline. I need to simplify … however this isn’t tantamount to deregulation.” He specified that this implies sooner decision-making within the context of the REACH regulation — excellent news for Antwerp industrialists.

Commissioner for Vitality and Housing Dan Jørgensen was clearer on the necessity to cut back dependency on gasoline from Russia and the excessive toll being paid throughout the EU, particularly by {industry}. Retaining chemical manufacturing within the EU will guarantee it stays topic to tighter restrictions and regulation than many of the world. Whereas the petrochemical {industry} will definitely welcome reducing the manufacturing price, it’s much less prone to welcome continued tighter restrictions. Is that this one of the best we are able to do?

Marrying the Inexperienced Deal and the Clear Industrial Deal

Regardless of this seemingly thrilling alternative for Antwerp Declaration signatories, a transparent narrative and political agenda directed at elevated manufacturing enabled by a lowered regulatory burden should not be the one alternative for the EU. The planetary crises require decisive motion in step with the EU’s commitments and the wants of communities worldwide impacted by large polluters and poisonous industries.

A lot of the context utilized by Draghi is the geopolitical strain from Chinese language {industry} and a resurgent United States, whether or not due to Trump or the Inflation Discount Act. Whereas China has gained a transparent edge in lots of points of the electrical financial system (e.g., electrical autos, photo voltaic panels, and wind generators), the EU now has the chance to realize a bonus with chemical substances. The place Draghi has confused the necessity to innovate, Niinistö has emphasised resilience and preparedness. 

The EU should innovate itself out of poisonous industries. This requires political and monetary incentives. Boosting funding in modern alternate options which can be protected and sustainable by design all through their life cycle is a future the EU can notice, and one communities and the setting desperately want. Reliance on petrochemicals have to be phased out.

In marrying the Inexperienced Deal and the Clear Industrial Deal, von der Leyen should put folks and the planet first. The Clear Industrial Deal can be revealed within the first 100 days of the Fee. It should not be a doc drafted by poisonous pals prioritizing their earnings in Antwerp. There’s nothing clear about poisonous petrochemical air pollution and its impacts on communities and livelihoods.

Civil Society’s Function in Shaping the Clear Industrial Deal

Dombrovskis talked of “participating in a brand new sort of implementation, simplification, dialogues with stakeholders” as a cornerstone of the Fee’s work. Civil society is able to interact in that dialogue to help the wedding of two seemingly disparate offers and make sure the Clear Industrial Deal aligns with the EU’s commitments and is in step with the planet’s wants and communities worldwide. 

As von der Leyen navigates the following 5 years, her compass should level towards daring local weather motion, not {industry} appeasement. The Clear Industrial Deal’s first draft will set the tone. It can’t be co-opted by poisonous pursuits that prioritize earnings over the planet.

The EU has a alternative: innovate away from poisonous industries or threat locking many years of environmental hurt. Civil society stands able to information the EU towards a future prioritizing communities and the setting.